Worldwide Interest, Developments and Markets

The majority of countries with large coal reserves have few alternative indigenous energy sources, however nearly 85% of known coal reserves are deemed unmineable with surface mining techniques so many are turning to UCG to fully utilises this valuable resource and enable security of supply. Experts believe UCG could triple or quadruple the availability of coal globally. Consequently there is now a proliferation of UCG projects around the world.

At least 10 new feasibility studies on UCG were initiated between 2007/9. Now commercial projects are underway,  Australia has three commercial scale trials in progress and others are in various stages of planning in China, South Africa, India, UK, USA, Canada, Hungary and Poland.China is believed to have conducted more trials of the process than any other country over the past 10 years.

The map below gives an indication of the level of UCG activity in recent years:  

  

European interest in UCG was rekindled in the 1990s with the completion of the European Field Trial in Spain, a DTI feasibility study in 2004, concluded that UCG with carbon capture and storage (UCG-CCS) has the potential to contribute to the UK's energy requirements,. Since then concerns over security of European energy supplies  and economic viability has moved very much in favour of UCG over other fossil fuel conversion methods. This lead the development of UCG and UCG-CCS in the UK resulting in the start of the UCG-CCS study under the Firth of Forth in Scotland.officials hope the process will provide access to vast coal reserves under the North Sea and the first commercial UCG licence has now been granted in the UK. All over Europe, which has extensive deep coal resources, UCG is again being heavily researched. Poland and the Czech Republic, see it as an attractive option for the extraction of coal in the Silesian Basin. Interest is now high in Russia, Uzbekistan, Slovakia, Kazakhastan

The European Union has itself embarked on a carbon abatement technology strategy, which will strongly influence the next energy research framework FP7. Clean coal power generation through CCS and clean coal technologies (CCT) are the main platforms of the CCS programme.

The Wyoming coal areas around Gillette are arguably the birthplace of modern UCG, as most of the US trials during 1972-1989 were undertaken in that region. At the end of these trials, the many technical advances developed during the programme were considered technically proven and detailed design work for several commercial projects undertaken.  The Wyoming Powder River Basin remains the centre of interest for a commercial UCG project in the US and recent indications show this may be soon. The US has huge coal reserves and at present still engages in traditional surface mining in many coal rich counties and states

China has a pressing need to expand its energy markets to support its industrial base and increased requirements for energy. The Chinese Government sees UCG as a priority development both as a route to liquid hydrocarbon manufacture and power production using combined cycle gas turbines. Trials of UCG at shallow depth have been underway since about 1985. There have been more UCG trials in China than anywhere else in recent years. In India a co-ordinated programme of UCG development has now been initiated, sponsored by the Government. The target for syngas utilisation includes power, nitrogenous fertilisers, petrochemical and liquid fuels. A 100 page government report on UCG was published in 2008 and indicated areas that could be alloted as UCG sites.

Indonesia and Vietnam are also very keen and both have recently signed MOU's with commercial UCG operators to undertake studies in the regions. 

The Majuba coal field north of Johannesburg supplies a 4,200MW power plant but the field is severely faulted with volcanic intrusions making mining difficult. The coal resource is 1.2Btonnes and average depth of 300m makes it potentially suitable for UCG.

Eskom Ltd, the principle power company in South Africa, undertook a pre-feasibility UCG study of the prospect in 2003. This led to a planned 3 month UCG trial aimed at producing gas in October 2005. It is hoped the UCG plant will be up-rated to 1,200MW output and an IGCC plant constructed in parallel.

Sasol has also been researching UCG in South Africa for many years, as Gasification and Coal to Liquids specialists this would compliment there energy portfolio.

A recent agreement has been signed to introduce the first commercial UCG operation in Alberta. Other regions are being explored for further potential sites

  The chart below shows global coal reserves